Mathematics, 22.03.2020 06:45 Daveandemily17
Best Value Corporation's Trial balance as of December 31,2020 is presented below. All 2020 transactions have been recorded except for the items described below.
Cash Debit $34,890
Accounts Receivable Debit $28,789
Inventory Debit $ 25,540
Land Debit $55,674
Buildings Debit $275,850
Equipment Debit $55,120
Allowance for Doubtful Accounts Credit $1,027
Accumulated Depreciation-Buildings Credit $ 63,306
Accumulated Depreciation- Equipment Credit $16,048
Accounts Payable Credit $35,278
Interest Payable Credit $0
Dividends Payable Credit $ 0
Unearned Rent Revenue Credit $48,900
Income Tax Payable Credit $0
Bonds Payable Credit $0
Discount on Bonds Payable Debit $0
Common Stock ($2 par) Credit $ 29,200
Paid in Capital in Excess of Par- Common Stock Credit $44,580
Preferred Stock ($60 par) Credit $0
Paid in Capital in Excess of Par-Preferred Stock Credit $0
Retained Earnings Credit $107,904
Treasury Stock Debit $0
Cash Dividends Debit $0
Sales Revenue Credit $676,068
Rent Revenue Credit $0
Bad Debt Expense Debit $0
Interest Expense Debit $0
Cost of Goods Sold Debit $413,542
Depreciation Expense Debit $0
Other Operating Expenses Debit $53,274
Salaries and Wages Expense Debit $79,632
Income Tax Expense Debit $0
Total Debits $1,022,311
Total Credits $1,022,311
Unrecorded Transactions: Round all calculations if necessary to 0 decimals (to the nearest dollar, do not show cents.)
1. On January 1,2020, BestValue Issued 520 shares of $60 par, 5% preferred stock for $75,810.
2. On January 1,2020, BestValue also issued 5,800 shares of common stock for $42,050.
3. On January 1,2020 BestValue issued $325,000, 5.5 %, 9 year bonds when the market rate was 6%. Interest is to be paid annually on each January 1, beginning 1 year from date of issue.
4. BestValue reaquired 3,600 shares of its common stock on January 12,2020 for $8.50 per share.
5. On December 31,2020, BestValue declared the annual preferred dividend plus a $2.75 per share dividend on the outstanding common stock, all payable in cash on January 31,2021.
6. On December 31,2020 BestValue estimates that the total amount of accounts receivable that is uncollectible at year end is $1,850.
7. The Building is being depreciated using the straight line method over 25 years. The salvage value is $100,000.
8. The equipment is being depreciated using the straight line method over 5 years. The salvage value is &15,000.
9. The unearned rent was collected on December 1,2020. It was receipt of 3 months rent in advance(December 1,2020 through February 28,2021).
10. The first cash interest payment on the 5.5% bonds is due January 1, 2021. The annual interest on the bonds for 2020 has not yet been recorded. BestValue uses the effective interest method.
11. The BestValue Corporation must make an adjusting entry to accrue income tax expense on Income Before Income Tax at a rate of 26%. The income taxes will not be paid until March 2021.
Instructions:
(a) Prepare journal entries for the transactions listed above.
(b) Prepare an updated December 31,2020 trial balance.
(c) Prepare a multiple- step income statement for the year ending December 31,2020.
(d) Prepare a retained earnings statement for the year ending December 31,2020.
(e) Prepare a classified balance sheet as of December 31,2020.
(f) Calculate the following ratios, clearly presenting your work and answers:
1. Working capital
2. Current ratio
3. Return on Stockholder's Equity(use ending Common Stockholder's Equity)
4. EPS(all shares are already weighted)
5. Debt to assets ratio
6. Times interest earned ratio
Answers: 1
Mathematics, 21.06.2019 18:10
Which points are solutions to the linear inequality y < 0.5x + 2? check all that apply. (–3, –2) (–2, 1) (–1, –2) (–1, 2) (1, –2) (1, 2)
Answers: 3
Mathematics, 21.06.2019 21:30
For the inequality |c| < |d| to be true, which of the following must be true?
Answers: 2
Mathematics, 21.06.2019 22:00
In the sixth grade 13 out of 20 students have a dog if there are 152 sixth grade students how many of them have a dog
Answers: 2
Mathematics, 21.06.2019 22:40
Adeli owner keeps track of the to-go orders each day. the results from last saturday are shown in the given two-way frequency table. saturday's to-go deli orders in person by phone online total pick up 38 25 31 94 delivery 35 28 34 97 total 73 53 65 191 what percent of the to-go orders were delivery orders placed by phone? a. 14.66% b. 38.41% c. 28.87% d. 52.83%
Answers: 2
Best Value Corporation's Trial balance as of December 31,2020 is presented below. All 2020 transacti...
Mathematics, 08.03.2021 04:30
Mathematics, 08.03.2021 04:30
Mathematics, 08.03.2021 04:30
Mathematics, 08.03.2021 04:30
History, 08.03.2021 04:30
Mathematics, 08.03.2021 04:30
Social Studies, 08.03.2021 04:30
Mathematics, 08.03.2021 04:30
Social Studies, 08.03.2021 04:30
English, 08.03.2021 04:30
Social Studies, 08.03.2021 04:30